Henry Paulson Jr

Treasury chief Paulson on verge of historic new powers. Secretary Paulson is not the sole architect of the Bush administration’s bailout strategy for the US economy, of course. By all accounts he is part of a troika of top policymakers with Federal Reserve Chairman Ben Bernanke and New York Fed Chief Timothy Geithner.

But as the public face and dealmaker of the plan, Paulson is the one most in the spotlight. Moreover, bailout legislation submitted to Congress by the White House over the weekend would transform Paulson’s office into that of temporary overseer of America’s entire financial system.

This may not be the role that former Goldman Sachs head Paulson envisioned when he signed on as President Bush’s third Treasury chief.

“But he has to do this. He has no choice,” says Peter Morici, a business professor at the University of Maryland and the former chief economist at the US International Trade Commission.

The proposed expanded powers for the Treasury secretary are one aspect of the Bush bailout plan that has drawn criticism from Democratic members of Congress.